§ 50-06-47 — Pay for success fund - Continuing appropriation - Report to legislative management

management.
1. There is created in the state treasury the pay for success fund. The fund consists of all
transfers to the fund and fund earnings. Moneys in the fund are appropriated to the
department of health and human services on a continuing basis for defraying the
expenses associated with a pay for success program developed by the department.
The department shall develop the program with outcomes focused on improving
educational, social, or emotional achievement of at-risk children, improving the health
of children, and increasing participation in the workforce by individuals who qualify for
government assistance.
2. The pay for success program may include a performance-based grant, contract, or
other agreement for initiatives to improve outcomes that result in increased public
value and social benefits, including improved outcomes, cost-savings, increased public
revenue, or minimal administrative requirements.
3. The pay for success program must include the following:
a. A provision that a bonus payment may be provided to the recipient of the grant,
contract, or agreement to expand capacity for a proposed initiative;
b. A provision that a bonus payment may be provided to the recipient of the grant,
contract, or agreement only after a twenty-percent cost reduction has been
achieved;
c. A provision that a bonus payment may not exceed half of the cost reduction;
d. A formal evaluation to determine whether the program has met its proposed
outcomes; and
e. An annual report to the legislative management on the progress of the program.
4. The requirements of chapter 54-44.4 do not apply to the selection of a grant recipient,
the grant award, or payments made under this section.
5. All moneys designated for the fund from whatever source derived must be deposited
by the state treasurer in the pay for success fund. The state treasurer shall invest
moneys in the fund in interest-bearing accounts as is designated by the department of
health and human services and the interest earned must be retained in the fund. The
state treasurer shall apply the prudent investor rule in investing the moneys in the
fund. The commissioner of the department of health and human services or the
director's designee shall administer the fund.